CB takes action on ETI Finance and Swarnamahal Financial Services

The Monetary Board of the Central Bank of Sri Lanka, having considered the weak financial performances of the ETI Finance Ltd. (ETIF) and Swarnamahal Financial Services PLC (SFSP) with a view to safeguard the interests of the depositors and other creditors of the two companies, and to ensure safety and soundness of the financial system, decided to take regulatory action, as a temporary measure, under the provisions of the Finance Business Act No. 42 of 2011, with immediate effect, the Central Bank said in a statement.

As part of the regulatory action the Central Bank of Sri Lanka has decided to appoint a panel to manage the affairs of both companies.

The Bank will also restrict the withdrawal of maturing deposits and renew such deposits for a period of six months. The payment of interest due for deposits will be as per the agreed terms and conditions.

In the meantime, the companies can finalize the negotiations with prospective investors and the Central Bank will facilitate suitable investors as per the applicable laws and regulations.

The depositors of the two companies have been further informed that the Central Bank is taking further measures and closely monitoring the operations of the companies to protect the rights of the depositors and therefore, the depositors are kindly requested to cooperate with the Central Bank in its effort to ensure the stability of the ETIF and SFSP.

The depositors can contact the Department of Supervision on Non-Bank Financial Institutions of the Central Bank through the telephone numbers 011 2477258 or 011 2477229, for further clarification. (Colombo Gazette)